The largest ratings agency in China, Dagong has given a high A- investment rating to Russia’s Gazprombank which is intending to extend its ties to China and other countries in Asia.

"The assigned credit rating from Dagong will foster further
development of Gazprombank’s business network in Asia and other
countries in the Asia-Pacific region,” the company quotes Gazprombank’s Deputy Chairman Oleg
Vaksman in a press release on Wednesday

Dagong assigned the high A- credit rating to Gazprombank for
foreign and local currencies, with a stable outlook. The rating
is one notch below the sovereign rating of Russia, and at the
same level as US.

Gazprombank has said it is considering placing bonds on China’s
domestic debt market. The so-called ‘Panda Bonds’ can be placed
by foreign companies and banks only in case the borrower receives
a rating from a Chinese rating agency.

The Dagong agency says the bank has built a
strong system of risk management and, given the weak dependence
on debt markets, especially foreign ones; it has a high ability
to repay the debt in national and foreign currencies. It also
notes that Gazprombank has a significant market share in Russia,
and also has a competitive advantage in relation to the process
of the banking system’s centralization.

The positive rating assessment by Dagong comes at the right time
for the Russian banking sector as it is undergoing continuous
pressure from Western sanctions which limit the ability to raise
capital on international markets.

Some of Russia’s biggest lenders have been reporting dramatic
falls in their bottom line, with the net profit of VTB, Russia's
second biggest lender, falling by more than 99 percent in 2014 to
$13 million (0.8 billion rubles) against the record profits of
$1.6 billion (101.5 billion rubles) in 2013.The bank’s head Andrey Kostin said
last week the business model demonstrates stability amid the
crisis the Russian economy is going through.

Experts suggest the slowdown is short–lived
and Russian banking should recover soon, largely thanks to the
support of the monetary authorities.

“Thedecisionby the Central Bank to lower the
interest rate by 100 bps is a positive sign indicating that the
worst is behind. Further monetary easing will allow Russian banks
to improve their financials in the next few months,”
Aleksandr Prosviryakov, Treasuries and Commodities Manager at
PWC, told RT after Russia's key lender announced its decision.

Gazprombank is ranked third on a list of Russia’s largest banks
in terms of assets, with $77.2 billion (4.772 trillion rubles).
Earlier in 2015 Gazprom and Gazprom Neft also received positive
ratings from Dagong.